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Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $720,000. The estimated residual value of the
Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $720,000. The estimated residual value of the building is $42,000 and it has an expected useful life of 25 years.
What is the buildings book value at the end of the first year?
$28,800.
$31,238.
$662,400.
$57,600.
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